Healthcare Facilities Analyst Mayo discusses the initiation of coverage of the Healthcare Facilities Industry which includes UHS, EHC, LHCG, HCA, THC, SGRY, AMED, ACHC, DVA, MD and CYH, on an Analyst/Industry conference call to be held on November 19 at 11 am.

Healthcare Facilities Analyst Mayo discusses the initiation of coverage of the Healthcare Facilities Industry which includes UHS, EHC, LHCG, HCA, THC, SGRY, AMED, ACHC, DVA, MD and CYH, on an Analyst/Industry conference call to be held on November 19 at 11 am.

Healthcare Facilities Analyst Mayo discusses the initiation of coverage of the Healthcare Facilities Industry which includes UHS, EHC, LHCG, HCA, THC, SGRY, AMED, ACHC, DVA, MD and CYH, on an Analyst/Industry conference call to be held on November 19 at 11 am.

HCA Healthcare, Encompass Health, Universal Health initiated with Buy at UBS. UBS analyst Whit Mayo launched coverage of Healthcare Facilities with a broader research note titled "Navigating an Evolving Landscape - Who Will Be Left?". The analyst is most bullish on stocks that "discount the perceived secular sector headwinds" such as Buy-rated HCA Healthcare (HCA), Encompass Health (EHC), and Universal Health (UHS), adding that investors also under-appreciate the accelerating free-cash flow profiles of these companies. Mayo differentiates HCA Healthcare based on its 0% correlation in national hospital utilization trends against public results. The analyst is also bullish on LHC Group (LHCG), stating that its same-property admission growth projections are higher than the rest. Mayo rates Community Health Systems (CYH), DaVita (DVA), and Mednax (MD) at a Sell with a bearish view of dialysis, births, and inpatient surgery end-markets. The analyst sees Community Health Systems same-property volume trend at a relatively low rate. Mayo also gives Acadia (ACHC), Amedisys (AMED), Surgery Partners (SGRY), and Tenet (THC) a Neutral rating as part of this research note based on their relative valuation as a factor of same-property volume growth.

Split Congress 'best outcome' for MCOs and hospitals, says Morgan Stanley. Morgan Stanley analyst Zack Sopcak contends that the Democratic party retaking the majority in the House of Representatives and Republicans retaining the Senate is the "best outcome" for Managed Care Organizations and hospitals, stating that he now sees another attempt at a repeal/replace of the Affordable Care Act as "off the table." The split Congress could also lower the volume on the "Medicare for All" debate given a lack of mandate from either the Democratic or Republican party, Sopcak tells investors. The election results remove a key overhang for Centene (CNC) and Molina (MOH), which he views as most exposed to the ACA marketplace, and to a lesser extent the hospitals, Sopcak added. With ACA repeal/replace off the table, and given the longer term potential upside from Medicaid expansion in Utah and Idaho as expansion ballot initiatives appear to be passing in both states, Sopcak said Molina is emerging as his top pick in the space heading into the final weeks of 2018. Publicly traded hospital companies include Community Health (CYH), HCA Healthcare (HCA), LifePoint (LPNT), Tenet (THC) and Universal Health (UHS).